Philip Ng, an analyst from Jefferies, has initiated a new Buy rating on Titan America SA (TTAM).
Philip Ng has given his Buy rating due to a combination of factors that highlight Titan America SA’s strong market position and financial performance. TTAM has consistently outperformed the market with an 8% compound annual growth rate in cement volumes since 2013, compared to the US market’s 3%. This growth is supported by strategically located import terminals that allow TTAM to efficiently address supply shortages in the US cement market.
TTAM’s financial metrics further justify the Buy rating, as it boasts industry-high EBITDA margins of over 30% in cement and robust returns on invested capital at 18.5%. Despite its exposure to imports, TTAM has maintained steady margins, leveraging its investments in logistics and strategically positioned terminals. Additionally, TTAM trades at a 30% discount to its peers, offering good value, and its parent company’s significant ownership could make it an attractive acquisition target in the future.
In another report released yesterday, Stifel Nicolaus also initiated coverage with a Buy rating on the stock with a $19.00 price target.
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